The Centre on Wednesday approved a Rs 10 hike in the fair and remunerative price (FRP) of sugarcane, setting the price at Rs 285 per quintal for the upcoming October-September 2020-21 crushing season.
The Cabinet Committee on Economic Affairs, at a meeting chaired by Prime Minister Narendra Modi, gave its assent to the proposal in this regard moved by the Food Ministry.
Briefing reporters after the meeting, I&B Minister Prakash Javadekar said that the decision will benefit one crore sugarcane growers who will now get Rs Rs 2,850 per tonne of cane.
The price has been fixed on the basis of a recovery rate of 10%, while the farmers will get additional money at the rate of Rs 28.50 per quintal, if the recovery rate is 1% higher, at 11%, he said.
The recovery rate is the amount of sugar that can be produced from sugarcane. The higher the amount of sugar derived from the cane, the greater the price a farmer gets in the market.
Javadekar said the FRP will reduce by Rs 2.85 for every 0.1% decrease in the recovery rate in respect of sugar mills whose recovery is below 10% but above 9.5%.
The minister also said that even if the recovery rate is 9.5% or below, sugarcane farmers will get a remunerative price at the rate of Rs 270.75 per quintal.